By Michelle Sturman
Western Digital has finally reversed the trend of 11 consecutive quarters of losses, and is convinced that the small profit indicates a potential strong growth this year.
Western Digital reported revenue of US$530.7 million and net income of $1.8 million for its second quarter ended December 29, 2000, including a $10.2 million operating profit in its hard drive business and a 21% sequential growth in total revenue from its fiscal first quarter.
The consolidated Q2 results include an extraordinary gain of $10.6 million relating to bond redemptions. Excluding the extraordinary gain, the company would have had a net loss of $8.8 million.
“Western Digital has returned to the desktop HDD industry’s leadership position for both time-to-market and time-to-volume in the 5400 and 7200 RPM platforms, enabling us to achieve a richer product mix,” said Matt Massengill, president and CEO of Western Digital.
This new stronger operating performance reverses a harrowing string of 11 consecutive quarters of operating losses for Western Digital.